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nightsurge said:
All Bungie cutscenes are in-game engine rendered. The actual gameplay will look like this, too.

There's a difference between in-engine and in-game.  No idea what the difference will be for Halo: Reach, but in-engine is typically pre-recorded with nothing else processing except what is absolutely needed on a super high end computer.

Best example-- Left 4 Dead.  All of their cut scenes are in-engine on their insane computers but the actual game models are nowhere as near expensive as those.